You just read an investment analyst's report on a stock you might buy. According to the report, there's a 60% chance the stock's rate of return s will be +5%, and a 40% chance the stock's rate of return will be +10%. Based on this information, what is the expected rate of return for this stock?

• A.

  8%

• B.

  14%

• C.

  None of these are correct

• D.

  7%